Question

1. What are the hopes for economic integration in the Americas among those who  advocate free trade agreements?

2. Do you think that such hopes can come to fruition in the near future? Why?

Answer 1

Answer to Question 1)

Free trade agreements are arrangements through the help of which, countries establish trading relationships with themselves in a manner that foreign companies are considered local and low to 0 taxation policies is implemented by all parties which agree to sign such trade agreements respectively.

The recent free trade agreement in the Americas took place between US, Mexico and Canada which is also known as the USMCA or the United States Mexico Canada agreement on trade.

The core idea behind these agreements is to maintain economic liberalization and globalization as much as possible. It is a known trend, that countries which have embraced the concepts of globalization over the years have been fastest growing. This is because they realize that resources for countries are limited and that if we arrange ourselves in a way that we are mutually beneficial to one another, then profits can be maximized for each country.

The key hopes for economic integration revolved around the increased demand and supply for goods and services which happens as countries begin to experience fall in tariffs and easier exports and imports. It gives company the boost to perform better than their competition to remain profitable and to get as many customers as possible.

Thus, we can conclude by saying that to maximize profits and to make sure that resources are best utilized, there are people who advocate towards free trade.

Answer to Question 2)

In my opinion indeed these hopes may come true in the near future. The core reason for that is the fact that countries over the years have realized that globalization is an important tool to maintain profitability and to ensure that economic development can happen at a higher rate and the needs and wants of customers can be maximized.

The reason for the existence or want for existence of these agreements is extremely simple. They revolve around ensuring economic gains to all countries that form a part of the agreement, and in my opinion, this will indeed come to fruition in the near future to ensure the same.

Please feel free to ask your doubts in the comments section.